How can I report an ongoing passive carryover loss from a dissolved partnership using TurboTax online?

[Easterlymo]

Background: As a married couple, we operated a partnership until 2019. One of us was an active partner, the other was passive. When we dissolved the partnership, the passive partner had a passive disallowed loss of over 100K, per our final 2019 K-1. Form. I used the desktop version of TurboTax through 2023 and every year the program automatically retrieved data from the prior year and continued to report the passive loss, automatically. I lost this ability in 2024 when I lost all of my desktop files due to a hard drive crash. For 2024 taxes I'm using the online version of TurboTax This may not make much difference unless we invest in another partnership, but I would like to continue to report the ongoing loss and can find no way to do that using the online TurboTax premium program. So, I am asking whether it is possible to report this ongoing disallowed loss on my 2024 return.

[PatriciaV]

Your best option is to create a Schedule K-1 entry to retain the passive loss carryover on your TurboTax return. You'll need a copy of the last K-1 you received.

In TurboTax Online, open or continue your return.

1. Go to K-1 (this is a link).
2. On the Schedules K-1 or Q page, select Yes.
3. On the Did you receive any Schedules K-1? page, select Yes.
4. Select Start next to Partnerships/LLCs.
5. Enter the basic partnership information. You don't need to enter percentages or capital balances.
6. Do not check the box for "The partnership ended" or that you disposed of your interest.
7. You don't need to enter anything for the box codes.
8. On the page "Describe the Partnership," check the box for "I have passive activity losses..."
9. The next several pages provide boxes for you to enter your carryovers.
10. Continue the interview back to the list of K-1s.

Be sure to keep a copy of this K-1 in your tax documents in case you need to re-enter this information in the future.